Oil Prices Rise Due to War, Chinese Electric Vehicles Gain Attention

JAKARTA - The spike in global oil prices due to the conflict in the Middle East involving the United States (US), Israel, and Iran is expected to hasten the transition to electric vehicles (EVs) in various countries. This situation also presents an opportunity for China’s automotive industry to further strengthen its position in the global market. Quoting the South China Morning Post, Wood Mackenzie’s Energy Transition Research Director, David Brown, assessed that the turmoil in the Strait of Hormuz has the potential to become a turning point for accelerating EV adoption. “The closure of the Strait of Hormuz could be a game changer for electric vehicles,” Brown stated on Tuesday (24/3/2026). In early-week trading, Brent crude oil prices have breached the $100 per barrel level and remain under upward pressure. Tensions have escalated after US President Donald Trump threatened to attack Iran’s energy infrastructure if shipping routes in the Strait of Hormuz are not reopened within 48 hours. He also mentioned Brazil as the largest foreign market for Chinese EV producer BYD. A similar view was expressed by HSBC’s Asia Economist, Justin Feng. He believes that high and volatile oil prices make EVs increasingly attractive as a cost-efficiency solution, especially if the conflict persists longer. A report from think tank Ember notes that currently, 39 countries have EV sales exceeding 10 percent of the total car market. This number has risen sharply compared to just four countries in 2019. Developing countries are also catching up, and in some cases, surpassing advanced economies in electric vehicle adoption. On the other hand, the latest data shows that car manufacturers from the Land of the Bamboo Curtain are starting to lead global sales in 2025, ending Japan’s dominance that has lasted for more than two decades. Major players like BYD and Geely are reported to have surpassed Japanese brands such as Nissan and Honda in sales. Of the world’s 20 largest car manufacturers, six are from China, while Japan contributes five brands. China’s vehicle export performance also shows a positive trend. Throughout last year, total exports reached 8.32 million units, up 30 percent year-on-year. For EVs, the volume reached 2.32 million units, rising 38 percent.